Which of the following is true of a corporation?

exam review any help id apprciated

exam review any help id apprciated


CHAPTER 13 26. Which of the following is true of a corporation? A) A corporation cannot be privately hold. B) The earnings of a corporation may be subject to double taxation. C) A corporation has a limited life. D) The stockholders of a corporation have unlimited liability for the corporations debt. 27. Lack of mutual agency is best described as which of the following? A) The liabilities of the corporation cannot be extended to the personal assets of the stockholder. B) Shares of stock can be readily purchased and sold by investors on an organized stock exchange. C) Stockholders are not authorized to sign contracts or make business commitments on behalf of the corporation, D) Corporations pay income tax on corporate earnings, and shareholders pay income tax on corporate dividends. 28. Which of the following corporate characteristics is a disadvantage of corporation? A) Stockholders have limited liability. B) A corporation has a continuous life. C) There is no mutual agency between the stockholders and the corporation. D) Earnings of a corporation may be subject to double taxation. 29. Bentley Corporation received cash from issuing 17,000 shares of common stock at par on January 1, 2018. The stock has a par value of $0.05 per share. Which is the correct journal entry to record this transaction? A) Cash is debited for $850, and Common Stock-$0.05 Par Value is credited for $850. B) Cash is credited for $17,000 and Common Stock-$0.05 Par Value is debited for $17,000. C) Paid In Capital in Excess of Par-Common is debited for $16,150, and Common Stock- $0.05 Par Value is credited for $16,150. D) Cash is debited for $17,000, Common Stock-$0.05 Par Value is credited for $850, and Paid-in Capital in Excess of Par-Common credited for $16,150. 30. Which of the following is included in the entry to record the issuance of 14,000 shares of $7 par value common stock at $21 per share for cash? A) Cash is debited for $294.000. B) Common Stock is debited for $98,000. C) Common Stock is credited for $294.000. D) Paid In Capital in Excess of Par Common is debited for $196,000. 
31. The following information is from the December 31, 2018 balance sheet of Millner. Corporation Preferred Stock, $100 par Paid-In Capital in Excess of Par-Preferred Common Stock $1 par Paid-In Capital in Excess of Par-Common Retained Earnings Total Stockholders Equity $560,000 43,000 190,000 510,000 191.500 $1.494.500 What was the average issue price of the common stock shares? (Round your answer to the nearest cont.) A) $1.88 B) $1.00 C) $2.68 D) $3.68 32. Pumpkin Corporation issued 10,000 shares of common stock on January 1, 2018. The stock has no par value and was issued at $17 per share. The journal entry for this transaction includes a A) debit to Cash for $170,000 and a credit to Common Stock No.Par Value for $170,000 B) debit to Cash for $170,000 and a credit to Paid In Capital in Excess of Par Common for $170,000 C) credit to Cash for $170,000 and a debit to Common Stock No.Par Value for $170,000 D) credit to Cash for $170,000, a dobit to Paid In Capital in Excess of Par Common for $10,000, and a debit to Common Stock No.Par Value for $160,000 exam review any help id apprciated


CHAPTER 13 26. Which of the following is true of a corporation? A) A corporation cannot be privately hold. B) The earnings of a corporation may be subject to double taxation. C) A corporation has a limited life. D) The stockholders of a corporation have unlimited liability for the corporations debt. 27. Lack of mutual agency is best described as which of the following? A) The liabilities of the corporation cannot be extended to the personal assets of the stockholder. B) Shares of stock can be readily purchased and sold by investors on an organized stock exchange. C) Stockholders are not authorized to sign contracts or make business commitments on behalf of the corporation, D) Corporations pay income tax on corporate earnings, and shareholders pay income tax on corporate dividends. 28. Which of the following corporate characteristics is a disadvantage of corporation? A) Stockholders have limited liability. B) A corporation has a continuous life. C) There is no mutual agency between the stockholders and the corporation. D) Earnings of a corporation may be subject to double taxation. 29. Bentley Corporation received cash from issuing 17,000 shares of common stock at par on January 1, 2018. The stock has a par value of $0.05 per share. Which is the correct journal entry to record this transaction? A) Cash is debited for $850, and Common Stock-$0.05 Par Value is credited for $850. B) Cash is credited for $17,000 and Common Stock-$0.05 Par Value is debited for $17,000. C) Paid In Capital in Excess of Par-Common is debited for $16,150, and Common Stock- $0.05 Par Value is credited for $16,150. D) Cash is debited for $17,000, Common Stock-$0.05 Par Value is credited for $850, and Paid-in Capital in Excess of Par-Common credited for $16,150. 30. Which of the following is included in the entry to record the issuance of 14,000 shares of $7 par value common stock at $21 per share for cash? A) Cash is debited for $294.000. B) Common Stock is debited for $98,000. C) Common Stock is credited for $294.000. D) Paid In Capital in Excess of Par Common is debited for $196,000. 
31. The following information is from the December 31, 2018 balance sheet of Millner. Corporation Preferred Stock, $100 par Paid-In Capital in Excess of Par-Preferred Common Stock $1 par Paid-In Capital in Excess of Par-Common Retained Earnings Total Stockholders Equity $560,000 43,000 190,000 510,000 191.500 $1.494.500 What was the average issue price of the common stock shares? (Round your answer to the nearest cont.) A) $1.88 B) $1.00 C) $2.68 D) $3.68 32. Pumpkin Corporation issued 10,000 shares of common stock on January 1, 2018. The stock has no par value and was issued at $17 per share. The journal entry for this transaction includes a A) debit to Cash for $170,000 and a credit to Common Stock No.Par Value for $170,000 B) debit to Cash for $170,000 and a credit to Paid In Capital in Excess of Par Common for $170,000 C) credit to Cash for $170,000 and a debit to Common Stock No.Par Value for $170,000 D) credit to Cash for $170,000, a dobit to Paid In Capital in Excess of Par Common for $10,000, and a debit to Common Stock No.Par Value for $160,000 exam review any help id apprciated CHAPTER 13 26. Which of the following is true of a corporation? A) A corporation cannot be privately hold. B) The earnings of a corporation may be subject to double taxation. C) A corporation has a limited life. D) The stockholders of a corporation have unlimited liability for the corporation’s debt. 27. Lack of mutual agency is best described as which of the following? A) The liabilities of the corporation cannot be extended to the personal assets of the stockholder. B) Shares of stock can be readily purchased and sold by investors on an organized stock exchange. C) Stockholders are not authorized to sign contracts or make business commitments on behalf of the corporation, D) Corporations pay income tax on corporate earnings, and shareholders pay income tax on corporate dividends. 28. Which of the following corporate characteristics is a disadvantage of corporation? A) Stockholders have limited liability. B) A corporation has a continuous life. C) There is no mutual agency between the stockholders and the corporation. D) Earnings of a corporation may be subject to double taxation. 29. Bentley Corporation received cash from issuing 17,000 shares of common stock at par on January 1, 2018. The stock has a par value of $0.05 per share. Which is the correct journal entry to record this transaction? A) Cash is debited for $850, and Common Stock-$0.05 Par Value is credited for $850. B) Cash is credited for $17,000 and Common Stock-$0.05 Par Value is debited for $17,000. C) Paid In Capital in Excess of Par-Common is debited for $16,150, and Common Stock- $0.05 Par Value is credited for $16,150. D) Cash is debited for $17,000, Common Stock-$0.05 Par Value is credited for $850, and Paid-in Capital in Excess of Par-Common credited for $16,150. 30. Which of the following is included in the entry to record the issuance of 14,000 shares of $7 par value common stock at $21 per share for cash? A) Cash is debited for $294.000. B) Common Stock is debited for $98,000. C) Common Stock is credited for $294.000. D) Paid In Capital in Excess of Par Common is debited for $196,000. 31. The following information is from the December 31, 2018 balance sheet of Millner. Corporation Preferred Stock, $100 par Paid-In Capital in Excess of Par-Preferred Common Stock $1 par Paid-In Capital in Excess of Par-Common Retained Earnings Total Stockholders’ Equity $560,000 43,000 190,000 510,000 191.500 $1.494.500 What was the average issue price of the common stock shares? (Round your answer to the nearest cont.) A) $1.88 B) $1.00 C) $2.68 D) $3.68 32. Pumpkin Corporation issued 10,000 shares of common stock on January 1, 2018. The stock has no par value and was issued at $17 per share. The journal entry for this transaction includes a A) debit to Cash for $170,000 and a credit to Common Stock No.Par Value for $170,000 B) debit to Cash for $170,000 and a credit to Paid In Capital in Excess of Par Common for $170,000 C) credit to Cash for $170,000 and a debit to Common Stock No.Par Value for $170,000 D) credit to Cash for $170,000, a dobit to Paid In Capital in Excess of Par Common for $10,000, and a debit to Common Stock No.Par Value for $160,000

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26. Answer: B) The earnings of a
corporation may be subject to double taxation.
The earnings of a corporation may be
subject to double taxation once when the corporate profits are
taxed and a second time when the dividends distributed are taxed in
the hands of the stockholders. Hence, option B) is true of a
corporation.
Options A), C), and D) are not true
of a corporation since it can be privately held, has a continuous,
unlimited life and the stockholders do not have unlimited liability
for the corporation’s debt.
27. Answer: C) Stockholders are not
authorized to sign contracts or make business commitments on behalf
of the corporation.
Corporations function through
employees designated as managers and officers who can bind a
corporation by signing contracts. The stockholders however lack
mutual agency as they cannot bind a corporation to any contract as
they are not authorized to sign on behalf of the corporation.
28. Answer: D) Earnings of a
corporation may be subject to double taxation.
The earnings of a corporation may be
subject to double taxation once when the corporate profits are
taxed and a second time when the dividends distributed are taxed in
the hands of the stockholders.
29. Answer: A) Cash is debited for
$850, and Common Stock-$0.05 Par Value is credited for $850.
The journal entry for cash received
from the issuing of common stock at par value will debit cash
account for 17000 x $0.05 = $850 and credit the common stock
account for $850. Hence, option A) is the correct answer.
Per Chegg guidelines, the first 4
MCQs have been answered. Please post the remaining separately.
Thank you.

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